During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
EURCAD: Price Approaches A Crucial Pivot
2024-01-31 • Updated
As Germany faces consecutive economic contractions and the broader Eurozone grapples with diverse economic conditions, the upcoming flash CPI inflation figures take center stage. These figures will shape market expectations regarding potential rate cuts, with the ECB carefully navigating uncertainties surrounding global conflicts, labor shortages, and inflationary pressures. The Eurozone's economic trajectory remains fluid, and policymakers must strike a delicate balance to ensure stability and address emerging challenges in the months ahead.
EURCAD - W1 Timeframe
EURCAD on the weekly timeframe is approaching the key pivot zone. It is important to note that this pivot zone rests between the 76% and 88% of the Fibonacci retracement levels, making it an even more powerful area of support. The 100-period moving average is also within close range, and can be expected to provide further support as may be required.
EURCAD - D1 Timeframe
On the Daily timeframe, we see what looks like an inverted head-and-shoulders pattern, with the demand zone formed at the head fitting perfectly into the pivot zone. There is also a trendline support in sight, and the market structure is clearly bullish following the break above the previous high as highlighted on the chart with the horizontal arrow.
Analyst’s Expectations:
Direction: Bullish
Target: 1.49717
Invalidation: 1.41530
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...